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APPENDIX 3 CHANGES FROM ANZSIC 1993


INTRODUCTION

1 The 2006 edition of the ANZSIC reflects a substantial review of all facets of the classification. The first edition of the classification was released in 1993 and there have been significant changes in the Australian and New Zealand economies in that period. Consequently, it is not surprising that the classification has undergone a substantial degree of change. There has been extensive consultation with users in both countries to ensure that the 2006 edition meets their current and emerging needs.

INDUSTRY CATEGORIES

2 There have been increases in the number of industry categories at each level of the classification as a result of the review. Table 1 compares the number of industry categories at each level of the hierarchy in the 1993 and 2006 editions. It also provides some summary statistics for Australia and New Zealand, using Australian value added data for 1999-2000 (Australian System of National Accounts, cat. no. 5204.0, Nov. 2003) and New Zealand full time equivalent employees for 2003 (New Zealand Business Demographic Statistics, as at February 2003).

Table 1: Industry Categories ANZSIC 1993 and 2006
Category	ANZSIC 1993	ANZSIC 2006	Difference	Percentage change
ANZSIC
Number of categories
Divisions	17	19	2	12
Subdivisions	53	86	33	62
Groups	158	214	56	35
Classes	465	506	41	9
Total	693	825	132	19
Australia
Average value added ($m)
Divisions	30 885	27 634	-3 251	-11
Subdivisions	9 907	6 105	-3 802	-38
Groups	3 323	2 453	-870	-26
Classes	1 129	1 038	-91	-8
New Zealand
Average number of full time equivalent employees
Divisions	89 835	80 379	-9 456	-11
Subdivisions	28 815	17 758	-11 057	-38
Groups	9 666	7 136	-2 529	-26
Classes	3 284	3 018	-266	-8

4 The summary statistics show how the additional categories in ANZSIC 2006 reduce the average size of aggregate statistics classified by industry, where the two classifications are applied at a common point in time.

ANZSIC DIVISIONS

5 ANZSIC 2006 includes 19 divisions, compared with 17 in ANZSIC 1993. The large and diverse Property and Business Services Division in ANZSIC 1993, together with some other services, has been rearranged into three new divisions: Rental, Hiring and Real Estate Services; Professional, Scientific and Technical Services; and Administrative and Support Services; resulting in the net gain of two divisions in ANZSIC 2006.

6 ANZSIC 2006 Division J Information Media and Telecommunications has been introduced, effectively replacing ANZSIC 1993 Division J Communication Services. The new division brings together classes from a number of ANZSIC 1993 divisions.

7 The new Information Media and Telecommunications Division groups units mainly engaged in the creation and storing of information products for dissemination purposes; transmitting information products using analogue and digital signals; and providing transmission and storage services for information products. These have been rapidly growing sectors of the Australian and New Zealand economies since the last review. In addition, both sets of changes better align ANZSIC 2006 with the division structures proposed for ISIC. Rev. 4.

8 Apart from the changes required as a result of the new division structure, several divisions were renamed to better reflect their composition or the terminology in current usage.

ANZSIC SUBDIVISIONS

9 ANZSIC 2006 includes 86 subdivisions, compared with 53 in ANZSIC 1993, the largest percentage increase in the number of categories for any level of the classification. This was the result of a number of factors including:

• improving the international comparability of the classification at this level;
• identifying groupings of economic activities with significantly different production functions; and
• promoting some more economically significant industries to this level of the classification.

11 Formation of the following subdivisions was particularly influenced by considerations of international comparability:

• Subdivision 12: Beverage and Tobacco Product Manufacturing;
• Subdivision 44: Accommodation;
• Subdivision 55: Motion Picture and Sound Recording Activities;
• Subdivision 58: Telecommunications Services;
• Subdivision 60: Library and Other Information Services; and
• Subdivision 70: Computer Systems Design and Related Services.

• Subdivision 02: Aquaculture;
• Subdivision 15: Pulp, Paper and Converted Paper Product Manufacturing;
• Subdivision 26: Electricity Supply;
• Subdivision 27: Gas Supply; and
• Subdivision 94: Repair and Maintenance.

• Subdivision 11: Food Product Manufacturing;
• Subdivision 45: Food and Beverage Services;
• Subdivision 77: Public Order, Safety and Regulatory Services; and
• Subdivision 80: Preschool and School Education.

• flow on effects from the large increase in the number of ANZSIC subdivisions;
• formation of ANZSIC groups better aligned with the ISIC;
• more homogeneous groupings of production functions; and
• recognising some new groups with relatively high levels of economic significance.

• Group 541: Newspaper, Periodical, Book and Directory Publishing;
• Group 542: Software Publishing; and
• Group 697: Veterinary Services.

• Group 112: Seafood Processing;
• Group 121: Beverage Manufacturing;
• Group 261: Electricity Generation; and
• Group 262: Electricity Transmission.

• Group 372: Pharmaceutical and Toiletry Goods Wholesaling;
• Group 722: Travel Agency Services; and
• Group 852: Pathology and Diagnostic Imaging Services.

19 Many individual classes in ANZSIC 1993 have been affected by change of some type. In some cases, two or more ANZSIC 1993 classes have been merged to form one class and others have been broken up into more detailed classes.

20 The composition of many classes has been affected by the formation of different groupings of activities, particularly due to the more rigorous application of production function homogeneity e.g. the new treatment of repair and maintenance activities.

21 It is difficult to summarise the relative contribution of the various principles to these many changes of varying degrees of significance. Particular principles had more impact in some parts of the classification than others and all of the principles were considered in making decisions on individual ANZSIC 2006 classes.

CORRESPONDENCES

22 Chapter 10 provides correspondences (concordances) between ANZSIC 1993 and ANZSIC 2006, and between ANZSIC 2006 and ANZSIC 1993, at the class level. These correspondences indicate how each class in each edition of the ANZSIC relates to the classes in the other edition i.e. class in one edition is comprised of one or more whole or part classes from the other edition.

23 For example, ANZSIC 1993 Class 2122 Ice Cream Manufacturing is directly equivalent to ANZSIC 2006 Class 1132 Ice Cream Manufacturing. There has been no change in the primary activity composition of the class between the two editions and there is therefore a 1:1 correspondence between the two classes.

24 As another example, ANZSIC 1993 Class 5730 Cafes and Restaurants has been split into two classes and a primary activity has been moved to a class in another division. ANZSIC 2006 Classes 4511 Cafes and Restaurants and 4513 Catering Services were previously part of ANZSIC 1993 Class 5730. In addition, theatre restaurants have been moved from this class to ANZSIC 2006 Class 9001 Performing Arts Operation. ANZSIC 1993 Class 5730 therefore corresponds to ANZSIC 2006 Classes 4511 and 4513, and part of ANZSIC 2006 Class 9001, a 1:many relationship (1:m).

25 In the correspondence tables the relationship described above is shown as follows.

	ANZSIC 1993 Class	ANZSIC 2006 Class
	5730 Cafes and Restaurants	4511 Cafes and Restaurants
		4513 Catering Services
		9001 p Performing Arts Operation

26 The correspondences do not indicate how the actual composition of activities of individual classes has changed between the two editions or how significant those changes are.

CLASS RELATIONSHIPS

27 By examining the nature of the class level correspondences, it is possible to broadly summarise the relationships between the classes in the two editions. Table 2 summarises the nature of the relationships between the classes in ANZSIC 1993 and ANZSIC 2006 i.e. whether the contents of the class remained the same (1:1), the class was merged with other whole or part classes (m:1), or the class was broken up into two or more whole or part classes (1:m). The figures are provided for each ANZSIC 1993 division.

Table 2: Class Relationships - ANZSIC 1993 to ANZSIC 2006
	Relationship of ANZSIC 1993 classes to ANZSIC 2006 classes
ANZSIC 1993 Division	1:1	m:1	1:m	Total
A Agriculture, Forestry and Fishing	22	3	13	38
B Mining	13	6	-	19
C Manufacturing	72	24	57	153
D Electricity, Gas and Water Supply	3	-	1	4
E Construction	17	-	4	21
F Wholesale Trade	13	6	22	41
G Retail Trade	12	-	26	38
H Accommodation, Cafes and Restaurants	2	-	2	4
I Transport and Storage	10	5	12	27
J Communication Services	2	-	1	3
K Finance and Insurance	11	2	2	15
L Property and Business Services	21	-	10	31
M Government Administration and Defence	3	-	3	6
N Education	7	-	1	8
O Health and Community Services	12	-	6	18
P Cultural and Recreational Services	12	-	9	21
Q Personal and Other Services	14	-	4	18
Total	246	46	173	465
Percentage of all classes	53	10	37	100
- nil or rounded to zero (including null cells)

28 The table shows that 37 percent of ANZSIC 1993 classes were subdivided and apportioned to two or more ANZSIC 2006 classes. The most significant structural changes at the class level, proportionately, occurred in Division F Wholesale Trade; Division G Retail Trade and Division P Cultural and Recreational Services. However, there was structural change across most of the classification.

29 Merging of classes occurred where:

• the previously defined industry had fallen below or near the economic significance limit;
• there was limited user interest in the grouping; and/or
• the degree of homogeneity of the individual classes was deficient because of significant secondary activities of units belonging to the other classes.

31 These tables are available free of charge from the ABS web site <www.abs.gov.au> and from the Statistics NZ web site <www.stats.govt.nz>.

COPING WITH THE IMPACT ON TIME SERIES DATA

32 With the implementation of a substantial revision of a major classification, many users prefer to have historical time series, compiled according to the previous edition of the classification, presented according to the new edition of the classification. The historical series cannot be recompiled on the new basis, rather any breaks in continuity between the old and the new observations are eliminated by quantifying the magnitude of the break and backcasting the series on the new basis.

33 A number of statistical methods can be applied to represent historical time series data. The size of particular breaks in series will differ for the same classification change depending on the data items involved e.g. the size of a particular break may differ, for example, for series on profits, employment or capital expenditure.

34 Both the ABS and Statistics NZ will release information explaining, for each series, how the impact of the move to ANZSIC 2006 will be handled, prior to the publication of the series on an ANZSIC 2006 basis.